Kayne Anderson Takes $45M Student Housing Complex

Los Angeles-based investment firm Kayne Anderson Capital Partners has acquired a 212-unit student-housing complex in Riverside, Calif., for $45 million, or $212,000 per unit. Constructed in 2001, the Class A apartment complex, GrandMarc at University Village (pictured), houses students at the University of California, Riverside. The property consists of eight four-story apartment buildings and one single-story leasing office/clubhouse. The apartments range in size from one-bedroom/one-bathroom to four-bedroom/four-bathroom units. Average size is 1,310 square feet.The unit price ranks above the average for apartment complex sales in the U.S. this year, according to data supplied by New York-based Real Capital Analytics. Real Capital’s research indicates that the average price per apartment unit for deals of more than $20 million is $204,188. In California, however, the $212,000 unit cost is lower than the average in the Los Angeles Metro area ($229,726) and the average in the San Francisco metro area ($244,940). The seller, GMH Communities Trust, which was acquired last month by Austin-based American Campus Communities, put the property on the market in January. At the time, the occupancy rate was about 75 percent. Comparable student housing in the area have occupancy rates ranging from 90 percent to 100 percent. Raising the occupancy rate represents the upside of the transaction for the buyer.“GrandMarc at University Village provided the buyer with a rare opportunity to acquire a Class A student housing community that includes an extensive community and apartment amenity package,” Dave Forrest, senior vice president of GMH Capital Partners, which arranged the sale, told CPN today. “The apartments feature individual bathrooms for each resident and mirror what many college students have grown accustomed to at home.”The fully furnished units contain washers and dryers, kitchen appliances, balconies, Internet connections and digital satellite TV. Community features include a pool and spa, fitness center and outdoor track, entertainment room, computer lab, study center, multimedia room, tanning booth, gas grills and a paved half-sized basketball court.